The income tax campaign always raises questions, especially among those who are thinking about buying property in Spain or have already taken the step. One of the most common questions is:can I claim any deductions for my main residence?

In 2026, the deduction for a primary residence still exists, but with important nuances. In addition, in regions such as the Valencian Community, there are additional tax benefits that can make a difference for buyers, investors, or residents.

In this article, we clearly explain who can benefit, how much can be deducted, and what specific advantages exist if you are considering buying a home on the Costa Blanca.

Context: what has changed in the main residence deduction

For many years, the deduction for purchasing a home was one of the main tax incentives in Spain. However, this benefit changed significantly in 2013.

Currently:

• The national deduction for purchasing a main residence only applies to properties acquired before January 1, 2013.

• Even so, it remains relevant for many homeowners.

• New deductions have emerged related to renovation, energy efficiency, and regional incentives.

This means that if you are thinking about buying a property on the Costa Blanca today, the tax approach is different: less focused on the purchase itself and more on tax optimisation, regional incentives, and energy efficiency.

Deduction for the acquisition of a main residence

Main requirements

You may benefit from this deduction if:

• You purchased your main residence before January 1, 2013.

• Or you made payments towards its construction before that date.

• You have already applied this deduction in your 2012 tax return or earlier.

This also includes:

• Properties that were under construction at that time.

• Renovation or extension works completed before 2017.

How much can you deduct?

• 15% of the amounts invested

• Maximum limit: €9,040 per year

Additionally:

• For adaptation works related to disability:

  
  

  • Increased limit of up to €12,080 per year

  
  

👉 This includes both mortgage principal and interest.

Deduction for rental of main residence

Although this deduction was removed in 2015, some taxpayers can still apply it if:

• They signed the rental contract before January 1, 2015

• They had already been applying the deduction previously

How much can be deducted?

• 10.05% of the rent paid

• Taxable income below €24,107.20

Deductions for renovation works on the main residence

This is currently one of the most interesting areas, especially for those buying a property to renovate or invest in.

Energy efficiency improvements

There are three levels of deduction:

• 20% deduction

  
  

  • Minimum 7% reduction in heating and cooling demand

  • Maximum base: €5,000

  
  

• 40% deduction

  
  

  • 30% reduction in energy consumption or upgrade to energy rating A or B

  • Maximum base: €7,500

  
  

• 60% deduction

  
  

  • For full building energy renovation

  • 30% reduction in consumption or significant energy improvement

  
  

📌 Key requirement: having an energy certificate before and after the works.

👉 This creates very interesting opportunities for those looking for real estate investment in Spain, especially in areas like the Costa Blanca, where renovation projects are on the rise.

Regional deductions in the Valencian Community

If you are considering buying a home on the Costa Blanca, you should know that the Valencian Community offers additional tax advantages.

Main available deductions

This region includes benefits related to:

• Purchase of a main residence

  
  

  • Especially for young buyers or people with disabilities

  
  

• Rental of a property

  
  

  • With deductions depending on the taxpayer’s profile

  
  

• Job-related relocation

  
  

  • For moving residence due to work reasons

  
  

• Renovation and energy efficiency

  
  

  • Incentives to improve the property

  
  

• Renewable energy

  
  

  • Installations such as solar panels

  
  

• Residence in areas at risk of depopulation

  
  

  • Additional benefits to encourage settlement

  
  

• Financing-related aid

  
  

  • Grants or incentives linked to property purchase

  
  

👉 These deductions depend on the taxpayer’s profile and current regulations.

Key advantages for buyers on the Costa Blanca

If you are considering buying property in Spain, especially in the Valencian Community, these deductions offer several advantages:

✔ Tax optimisation

• Possibility to reduce your annual tax burden

• Particularly interesting for renovations or energy upgrades

✔ Higher investment returns

• Energy improvements increase property value

• Better positioning for rental or resale

✔ Regional incentives

• Specific benefits depending on your profile

• Support not available in other regions

✔ Opportunity in resale properties

• Renovating a property can generate significant deductions

• Ideal for buyers looking for apartments by the sea

Recommendations for buyers

Before buying or investing, it is important to consider:

1. Analyse your tax situation

Each case is different. Deductions depend on:

• Income

• Age

• Type of property

• Autonomous community

2. Evaluate the type of property

• New build vs resale

• Potential for renovation and energy improvement

3. Plan your financing

Although there are incentives available, mortgage approval always depends on the buyer’s financial profile and the bank’s approval.

4. Seek professional advice

A good real estate agency on the Costa Blanca will not only help you find a property, but also guide you through:

• Taxes

• Deductions

• Real purchase costs

Conclusion

The main residence deduction in 2026 is still relevant, but it has evolved. Today, the focus is on:

• Tax benefits for long-term homeowners

• Incentives for energy efficiency

• Regional deductions, especially in the Valencian Community

For those looking to buy a house near the sea, understanding these advantages can make the difference between a standard purchase and a well-optimised investment.

At Costa Esperanza Real Estate, we help you find the ideal property on the Costa Blanca while supporting you throughout the entire process:

• Personalised property search

• Tax and financial advice

• Investment analysis

• Full purchase management

If you are considering buying property in Spain, we will be delighted to help you make the best decision.

👉 Contact us with no obligation.